North, East Corporations attach bank accounts of DDA

North, East Corporations attach bank accounts of DDA

Acting tough on government agencies that owe crores of rupees as property tax to the municipalities in the city, the North and East Delhi Municipal Corporations have attached bank accounts of Delhi Development Authority (DDA), which owes Rs 400 crore to the two corporations together.

While the DDA owes Rs 272 crore property tax to the North Corporation, it has to clear tax dues of Rs 130 crore to the East Corporation.

The North Corporation has attached three bank accounts of DDA — one each in State Bank of India and Central Bank of India at Vikas Sadan, INA market, and one with Punjab National Bank, Ashok Vihar.


While the three banks have frozen the accounts of DDA, they are yet to remit the amount in favour of the corporation.

In a written communiqué to the North Corporation, Central Bank of India wrote that while it has frozen the account, it has referred the matter of remitting the amount to higher authorities.

“In receipt of your referred letter for attachment of bank accounts, securities and deposit of DDA with us for an amount of Rs 272,16,80,000 and pay to same to your office, the said amount has been marked as hold amount in DDA account with them,” the letter to the civic body reads.

On transferring the amount to the account of North Corporation, the bank further wrote, “we have referred the matter to our higher authorities for seeking guidance/instructions in the matter. We shall revert in the matter on hearing from our higher authorities. Meanwhile, we reiterate that we have held the said amount in view of your letter under reference.”

East Delhi Municipal Corporation has also attached the bank account of the land development agency to recover property tax dues of Rs 130 crore.

“The corporation has made repeated demands to the DDA, but the land owning agency failed to clear the dues. Attachment action has been taken under provisions of the Delhi Municipal Act,” said a senior corporation officer.

Earlier, the South Delhi Municipal Corporation recovered Rs 120 crore from the DDA in the current financial year after the former attached its bank account, following non-payment of property tax dues. SDMC attached four bank accounts of DDA, arguing that the land owning agency had defaulted on taxes on 319 properties.

The SDMC had raised a demand of Rs 746 crore from DDA as property tax. The amount was reached after calculating tax plus interest on properties owned by the DDA falling under the corporation’s jurisdiction.